“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
— Warren Buffett
The Warren Buffett investment philosophy calls for a long-term investment horizon, where a twenty year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into AutoZone, Inc. (NYSE: AZO)? Today, we examine the outcome of a twenty year investment into the stock back in 2002.
| Start date: | 12/16/2002 |
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| End date: | 12/15/2022 | ||||
| Start price/share: | $70.77 | ||||
| End price/share: | $2,358.50 | ||||
| Starting shares: | 141.30 | ||||
| Ending shares: | 141.30 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 3,232.63% | ||||
| Average annual return: | 19.15% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $333,207.56 | ||||
As we can see, the twenty year investment result worked out exceptionally well, with an annualized rate of return of 19.15%. This would have turned a $10K investment made 20 years ago into $333,207.56 today (as of 12/15/2022). On a total return basis, that’s a result of 3,232.63% (something to think about: how might AZO shares perform over the next 20 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
One more investment quote to leave you with:
“Know what you own and why you own it.” — Peter Lynch
